1. Technical Field of the Invention
This invention relates generally to processing systems for issuance of cards and processing of card transactions and more particularly to transaction fees in such processing systems.
2. Description of Related Art
A processing system typically includes processing modules and secure communications networks for card processing, such as issuance and activation of cards, authorization and processing of card transactions and clearance and settlement of card transactions. The processing system communicates with issuers, such as bank or other entities, to issue cards to cardholders. The processing system then coordinates activation of cards and creation of card accounts for cardholders in its databases. The processing system also processes electronic transactions for the card accounts and determines transaction fees depending on the type of transaction. For example, various transaction fees may be charged to the card accounts depending on the type of transaction, such as withdrawing money from an ATM, Point of Sale (POS) purchases, ATM balance inquiries, etc. During clearance and settlement of electronic transactions, the processing system transmits the transaction amounts and transaction fees to the associated issuers for card accounts and remits payments of transaction amounts received from the issuers to acquirer banks for the merchants.
During the issuance process, an issuer first selects a type of card, such as credit, debit and prepaid cards, for issuance. The processing system communicates certain card features and services that the issuer may configure for the type of card selected by the issuer. One of the current features offered by processing systems during card issuance is an option for the issuer to select fee options for a unique fee type, wherein fee type may include fees associated with a transaction or fees associated with maintenance or service of a card. The processing system also provides an option for an issuer to select a unique fee type and waive any fees for a selected number of that unique fee type for the issued card. The option may provide for the waiver of fees to be reset periodically. For example, the selected fee options may provide for waiver of a number of fee types that resets each month providing for a number of free transactions each month for that unique fee type.
During processing of card transactions, the processing system tracks the number of that unique fee type processed for the card account associated with the issued card. If the number of that unique fee type is below the number selected by the issuer for the selected period, then the fee for that unique fee type is not charged to the card account by the processing system. However, once the selected number of that unique fee type has been exceeded for a selected period, the processing system then charges the associated fee for that fee type to the card account.
The current processing systems lack flexibility in the fee options provided to an issuer during issuance of a card, especially with respect to fee options that may be applicable to more than one fee type. Therefore, a need exists for a more flexible processing system that is operable to provide different options for waiver and/or selection of fees for groups of fee types